A few private US companies made attempts to provide compulsory sickness insurance. Meanwhile, due to lapses in defining a practical insurance coverage, the companies were liable to go in large losses. The lacuna of medical mismanagement which led to poor return on investment gradually made insurance agenda less popular. However, medical advancement reached new level with new diagnostic tools and refined medical courses and practices. Simultaneously the cost of medical services increased amounting to around one third or even half of total income of a family.
In case of expensive treatment and frequency of sickness, there was possibility of public unrest resulting in falling out with the government. Many private practices were developing new medical technologies with support of businesses. These treatments however, were costly and limited to affluent clients or those who can shell extra money. Health became an important factor which led to social welfare activism.The hospitals were created as one point medical service center with treatment, care and medicine. The patients used to admit in hospitals which were kept antiseptic increasing better recuperation over diseases than at home.
Many hospitals and private practitioners helped chronically ill patients with free treatment and medicines. There was increasing concern about the affordability of medical treatment among all sections of society. Based on research conducted by a panel based on studies by economists, health care providers, overall health care expenditure annually for year 1929 was around $3.7 billion in the United States.
Group insurance was next targeted, because it became predictable to understand frequency of sickness and its impact on overall healthcare management. Better coordinated health care made it possible to draw a reliable insurance coverage for mass scale being independent of local businesses and labour unions. Because of shared responsibilities, the expenses between healthcare institutions and businesses were shared and came down appreciably lowering the cost of medical treatment.
American Medical Association (AMA) strongly opposed against private and other health insurances terming them unethical that might lead to an outrage among the people and distrust against the idea of proper medical treatment. Many committee members also introspected about the availability of large funds which became another hassle as they would had flown from the government or employers or both. Due to this timely intervention, voluntary health insurance plans were receded by then President Franklin D. Roosevelt. Private insurance providers were warned against the government’s role in intervening the overall expenses and its regulation.
Wide number of these issues affected the effective insurance plans in place, doctor-patient relations and affordable medical treatment. In the New York Time appeared a popular news title “Socialized medicine is urged in survey” underlines the continued course of medical health centers to provide free and effective treatment for many diseases.
Unaffordable health care problem continued with the United States still prioritizing a stable economy in comparison to health insurance. President Franklin Delano Roosevelt took into account unemployment insurance and old-age benefits and also appointed a committee in 1935 to devise a viable insurance plan for the state residents.